Serum Institute Of India Ltd. Vs. Addl.C.I.T. (ITAT Pune)
ITA No.948/PN/2005. (Assessment Year: 2001-02), Date of Pronouncement: 18-01-2012.
Non-compete fees of capital nature entitled for depreciation as intangible asset- In thie case ITAT held that the non-compete fees was in the nature of capital expenditure and entitled for depreciation as intangible asset under Section 32(1 )(ii) of the Act. ITAT followed the in view of the Chennai Tribunal’s decision in the case of Real Image Tech.
Export turnover of Export Oriented Unit can be included in export turnover of business while determining deduction under Section 80HHC of the Income-tax Act- ITAT held that export turnover of Export Oriented Unit (EOU) shall be included in export turnover of the business of the taxpayer to determine the deduction under Section 80HHC of the Income-tax Act, 1961 (the Act). It was held that export turnover as defined in Section 80HHC of the Act is wide enough to cover export sales of the EOU unit. Therefore, there is no legal bar for including the export turnover of Export oriented Unit unit in the export turnover of the entire business of the taxpayer while determining the deduction under Section 80HHC of the Act. The Tribunal considering the ‘principle of parity’ held that once a constituent is added to the total turnover, the denominator, the same has to be included to the ‘export turnover’, the numerator.